Business Overview

PLEASE NOTE THAT THE FINANCIALS SHOWN ARE USING A 3YR AVERAGE FOR REVENUE AND EBITDA!

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BUSINESS HIGHLIGHTS:
Founded in 1998, this 22-year-old mid-Atlantic based Company provides full-service high quality custom metal fabrication and installation services. The Company specializes in commercial projects for general contractors and construction management firms. The projects include renovations, new construction and additions of existing hotel, school, movie theaters, retail establishments, industrial plants, hospitals, and warehouse stores. Projects include but are not limited to detailing, fabrication and installation of stairs, rails, reinforcing structures, platforms and ships ladders. The Company is an industry leader when it comes to steel structures. The Company has evolved into a diversified fabrication company that has the capacity, experience, and manpower to take on any job of any size.

INVESTMENT HIGHLIGHTS:
-Longstanding Business: The Company has been around for 22 years! It is highly reputable and has established itself as a leading specialist in the structural steel fabrication.

-Strong Client Relationships: The Company has built an extensive customer list and good industry relationships since its inception. The customer base is loyal, which allows the Company to save marketing costs that competitors must foot, both in acquiring new customers and in obtaining repeat business from existing customers.

-High-Caliber and High-Tenured Staff: The Company fosters a workplace where its extremely experienced and talented personnel are able to thrive and grow, and therefore remain long term

-Management Will Remain through Transition: Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.

-Strong Supplier Relationships: The Company has long-term relationships with its vendor base. The Company has multiple vendors for each of the materials it utilizes in order to reduce the risk of losing a single supplier.

-Value of Private Nonresidential Construction: Nonresidential construction is the largest end market for industry products. The construction of commercial centers, office buildings and institutions, such as schools and hospitals, spurs demand for metal plates, casings, bars, joists and other industry products.

Financial

  • Asking Price: N/A
  • Cash Flow: $2,312,568
  • Gross Revenue: $12,705,372
  • EBITDA: $2,312,568
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:10,200
  • Lot Size:N/A
  • Total Number of Employees:47
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates from a 10,200 square foot office and warehouse facility in Mt. Pocono, Pennsylvania. The facility is leased from a third-party.

Is Support & Training Included:

Absolutely. This is both a liquidity and legacy event.

Additional Info

The company was founded in 1998, making the business 24 years old.

The company has 47 employees and is located in a building with approx. square footage of 10,200 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. However, the real reason vs the one they tell you might be 2 completely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current reduction in earnings, or an array of other reasons. This is why it is really vital that you not depend entirely on a vendor's word, but instead, make use of the vendor's answer in conjunction with your general due diligence. This will repaint a more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that earnings margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Often times, operating businesses have repeat customers, which create the core of their day-to-day earnings. Specific variables such as new competition sprouting up around the location, roadway building and construction, and staff turn over can affect repeat clients and adversely affect future earnings. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the greater the possibility to construct a returning client base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? How might the regional average house earnings influence future earnings prospects?